Wedbush: Nvidia Earnings Could Be the Next Big AI Catalyst

Aug 20 - Nvidia's Aug. 27 quarterly report stands as the next major catalyst for investors, Wedbush analysts say, as artificial intelligence use cases keep expanding. The firm says the market sits near the start of a multi-year AI infrastructure buildout and views the results as a reminder of that cycle.

A consensus of analysts expects Nvidia NVDA to report about $1.01 in earnings per share on roughly $45.92 billion in revenue.

Nvidia joined other high-beta tech names, including Palantir PLTR and AMD AMD, in a recent pullback, which Wedbush frames as typical profit-taking rather than a structural shift. The bank notes large U.S. tech firms will drive much of near-term AI capital spending, about $350 billion this year, as more enterprises and governments allocate budgets for AI projects.

Wedbush calls pullbacks buying opportunities in core AI winners and IVES AI 30 constituents, which should benefit from broader enterprise adoption. Skepticism will persist and short-term volatility may occur, but Wedbush expects the tech bull cycle to remain intact for several years as spending on chips, software and infrastructure continues. Analysts will watch guidance and capital plans for signs of durability.